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The China’s poverty alleviation model, a big lesson for Nigeria

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The author at the legendary Great Wall in Beijing, China

Innocent Odoh, Abuja

China’s political and economic trajectory and the immense progress it has recorded in recent times have fascinated many people.  The Asian giant has built and continued to develop breathtaking infrastructure.  China is the second largest economy in the world and has one of the largest manufacturing sectors in the world. Under the guidance of the Communist Party of China (CPC), the country has made tremendous investments in human capital and diversified its economy such that tourism, manufacturing, commerce and industry, agriculture, education, science and technology, industrialization, arts, communications technology have all been modernized to meet the desired purpose of service delivery, mass employment and poverty reduction.

INNOCENT ODOH, who just returned from the Seminar for Heads of International Departments for Major Media Organisations from Africans Countries, organized by the Chinese Government and China International Publishing Group in Beijing, with visits to the Guangxi province, writes.

The dominant theme in China’s contemporary politics and policies is poverty reduction and successive governments have embarked on a succession of reforms to tackle poverty. According to Chinese President Xi Jinping, “without reform and opening up China would not be where it is today, nor would it have the prospects for a brighter future”.

Writer and journalist, Charles Onunaiju in his book “China’s Struggle for Modernization: From Revolution to Reform said “the trajectory of China’s reforms is rooted in the dynamics of her socio-economic and political process, whose totality has formed the scientific outlook on development (SOD).”

How the Transformation Started

About forty years ago, China was reportedly wallowing in abject poverty. Its citizens were among some of the most miserable in the world such that even Sub-Saharan Africa was regarded as doing better in terms of GDP per capita in the early 1970s.China in 1970 has a poverty rate that was higher than sub-saharan Africa.

When China was confronted with hard choices, it was then the irrepressible Deng Xiaoping, architect of the modern Chinese reforms and opening up, charted a new form of economic development within the realm of the China’s social construction defined by “socialism with Chinese Characteristics” in 1978.

When the Chinese leaders got the right model and motivation, they never looked back, they remained focused. From 1978 to 2015 China removed over 700 million people from poverty and today it has one of the lowest poverty rates in the world. China’s GDP growth rate from 2018 is 6.3% and it has reached about $10,000 GDP per capita one of the highest in the world.

The iconic Temple of Heaven in Beijing with thousands  of tourists

Of the 1.4 billion population of China today only about 16 million peopleare considered to be living below poverty line. But the government of President Xi Jinping has vowed that the country will eliminate absolute poverty by 2020. This might be an ambitious move but judging by the models in place, China might reach this goal.

The Magic of Chinese Poverty Eradication Model

The great leap forward was anchored by strong and visionary leadership of the Communist Party of China (CPC), which model is focused on economic growth- the most important factor in poverty reduction.  China embarked on rural development policy that was people- oriented and expanded the land policy that helped farmers have access to land to produce enough food to solve the problem of hunger.

The model includes accurate targeting and mapping of poverty with direct government investment in cash marked by fiscal discipline, accountability and zero tolerance for corruption.There are six aspects of accurately targeted poverty programme. These are:identification of the poor; Anti-poverty measures; Assignment of work team; Project arrangement,Fund use and Evaluation.

Chinagave massive attention to infrastructure development- building roads, waters projects, first class rail projects with speed trains, schoolsand massive investment in energy. And that is why today it has superb infrastructure that connect the cities, towns and rural areas such that China is a leading investment hub both for foreign direct investment and local investors.

 The leaders understood the strength of industrialization, the principle of diversification of investment patterns and balance between growth and development as well as inclusive economic growth. The country also embarked on privatization of small, medium scale enterprises, building up and transforming state-owned enterprises by listing them on the stock market.

China also paid attention to international trade and international cooperation.  Although China got help from other countries and international financial organizations in 1970 and 80s, such as the   World Bank and IMF, it did not accept conditionality that will cripple its chances of economic revival but decided on its own the best way to use loans and aids from international institutions and donor agencies.

Education, National Values and Consensus

Education is said to be the bedrock of the development of China. Through massive investment in compulsory education, China was able to resolve its internal contradictions. As a diverse society of about 56 ethnic groups, the Chinese Government created a national programme that harnesses the potentials of all its different peoples from its 34 provinces. Its inclusive policies created an enduring national identity for the Chinese People. This has ensured less rancorous politics despite multi-party system in China.

Solving food security, clothing, compulsory education, basic medical care and housing, have all become national priorities in China as all the citizens are being mobilized with greater freedom and liberty of the people, which has ensured social good in the largest scale.

China also adopted labour transfer schemes, relocation of the poor to better and more conducive environment, health assistance, ecological protection and using e-commerce to help the poor. Through the micro-finance system the Chinese government has provided poor families with 50,000 RMD and guided them specifically on how to use the funds on productive ventures.

Measurement of mechanism of evaluation

It is instructive that the career of leaders at all levels will be in jeopardy if they fail to curb poverty. In China, officials risk losing their jobs or demoted if they fail to deliver on their mandate of poverty reduction. Therefore alleviation of poverty is seen as a task that must be done in China and the leaders are duty-bound to achieve it.

Building a new type of international relations to address poverty

The tremendous progress of China has opened opportunities for Nigeria and other African countries. China through the Forum of China Africa Cooperation (FOCAC), has invested billions of dollars to develop infrastructure in Africa to reduce poverty. China has also initiated the Belt and Roads Initiative (BRI) to enhance connectivity and practical cooperation for shared prosperity.These are some of the measures of China’s international poverty reduction cooperation.

Xu Liping, Senior Research Fellow International Poverty Reduction in China during a lecture in Beijing said “because we have made progress in poverty reduction, we also like to share our experience with other countries.”

China has so far assisted more than 120 countries in the world. In Africa China has assisted 51 countries, in Asia-30, Europe- 12, Athlantic-9, and Latin America/Caribbean 19.

China’s continuous Innovation

Despite massive achievements in industrialization, which has led to mass production goods and services, China is still investing capital in automobile industry, which has started manufacturing electric cars as well as communications technology and many others.

China’s tourism industry is huge and well organized. Important historic monuments have been preserved and turned to tourists’attractions that have raked in billions every year.   The historic Chinese Great Wall in Beijing, the Forbidden City, and the Temple of Heaven also in Beijing are among world’s heritage sites. Each of these sites attracts over 40, 000 tourists daily and at peak periods particularly during festive times they can each attract as much as 80,000 people daily. China has tourist centers litter around the country. The magnificent Garden Park in Nanning City, the capital city of the Guangxi Province, the fabulous night boat ride in Liuzhou, the Elephant Trunk Mountain in Guilin all in the Guangxi  Province just to mention a few, have become the symbol of China’s identity and the preservation of cultural heritage with massive economic value.

Lessons for Nigeria

On December 2, 2019, the World Bank warned thatNigeria risks becoming home to 25% of the world’s poor people in a decade unless policymakers act to revive economic growth and lift employment.

Although the Nigerian economy is expected to expand by 2.1% in 2020 and 2021, analysts have expressed fears that the nation’s population growth rate of about 3% per annum may overstretch GDP growth rate.

The World Bank urged President Muhammadu Buhari to “increase domestic revenue, remove trade restrictions and improve the predictability of economic policy.”  It also called on the government to remove expensive fuel subsidies and reduce central bank lending to targeted sectors that crowd out banks.

“The cost of inaction is significant,” the bank said. “Under a business-as-usual scenario, where Nigeria maintains the current pace of growth and employment levels, by 2030 the number of Nigerians living in extreme poverty could increase by more than 30 million,” the bank warned.

This warning appears apt as the economic indicators are not kind to Nigeria at the moment. Nigeria’s inflation figure has increased to 11.85 % in November from 11.61% in October. Nigeria according to the World Poverty Clock is the poverty capital of the world with nearly 100 million of its estimated 200 million population living under the poverty line. Unemployment figures have increased to over 20% in the last four years and the country is heavily terrorized.

All these indicators present some bleak future for the country but Nigeria is abundantly blessed with human and material resources, which need purposeful government to change the fortunes of the country for the better.

The country has had successive poverty reduction programmes, with the most recent ones being National Poverty Eradication Programme (NAPEP), Sure-P, Social Intervention Programme (SIP), N-Power and a host of others. These programmes have not made the desired impacts because the motivations are usually wrong, probably more elitist and oftentimes hindered by corrosive corruption.

The realities of the deplorable poverty in Nigeria make it mandatory for Nigerian leaders at all levels to face the issues of economic development especially as it is estimated that Nigeria will become the third most populous country in the world by 2050. Therefore the leaders have to brace the challenge, learn from China and apply a model suitable the Nigerian condition.

Speaking on China’s governance experience recently, Chinese intellectual, Luo Jianbo, a professor from one of China’s leading universities, expressed worries that the menace of terrorism ravaging parts of Nigeria, political instability and inconsistent policies, are major impediments to investment in Nigeria.He noted that it has “become incumbent on Nigeria   to create the condition and opportunity for more investment.”

He stressed that apart from investments in hard infrastructure such as bridges, roads and electricity, Nigeria needs soft infrastructure such as trust, confidence, and political stability to attract more foreign investors.  

The Chinese governance model can be replicated in Nigeria and given the Nigerian character within the context of the unique Nigerian situation drawing from China, which has built an effective, responsive, accountable and consensus state built on common understanding and respect for its diversity.

 “Nigeria must first build national solidarity to foster a national consensus to create a new identity for Nigerians. Nigerians must get rid of rancorous and vicious political competition.

“Nigeria needs a benign and orderly competition and not vicious competition. It must promote unity and create a relationship between freedom and order,” the Chinese intellectual said.

Former Senator Representing Kaduna Central Shehu Sani, also called on Nigerians leaders to emulate China to lift itself from the travails and challenges bedeviling it. “China today represents the idea of a nation that has succeeded where others have failed,” he said.

Today the challenge of poverty reduction is enormous. This places more responsibility on the shoulders of leaders’ across Nigeria.  But can they rise to the challenge? The answer lies within the policies that will respond to the scourge of poverty.

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